UK's GfK consumer confidence depressed with a point, but remains positive

UK's November GfK long-running Consumer Confidence index declined by one point to +1. Declines were seen in three of the measures, which are used to calculate the index in this month, while the other one was steady.

Joe Staton, Head of Market Dynamics at GfK, says: "From summer's 15-year high, consumer confidence in the UK has continued to slide to +1 this month... This suggests that lots of households up and down the land will be sitting on a new three-piece suite this December..."

"Meanwhile, in each category, the outlook over the next 12mths continues to be less optimistic compared with the outlook over the previous, with the exception of savings where the outlook over the next 12mths continues to improve relative to the outlook over the previous", says Barclays in a research note.

Looking into the November report, it seems to underscore the divergence in income tranche confidence. The poorest confidence index is now marginally seen, while the sentiment declined by 1pt of those more than 50k pounds.

"While consumer confidence remains elevated in light of low inflation, consumers continue to feel moderately less confident about the future. This supports our macro scenario whereby private consumption is strong, and the primary driver of economic growth, but eases into H2 15 and 2016", added Barclays.